I would do a sofa along the length of the back wall. Get a small club chair on either side of the sofa.

If you need more seating, you could do a cluster of cubed ottomans as a coffee table. Hope this helps.

Thank you, yes, very helpful!

Someone has suggested a small sectional; I wonder what you think of that?

Do you entertain? The thing about sectionals are, they're very informal, take up a lot of space, and you end up with unused areas of furniture. So, if this is going to be an area where you're not going to entertain. and you want to lounge on, then it's a great alternative. If you're going to entertain, with a sectional you'll have 3 people max, sitting on a sectional facing ahead instead of each other for conversation. So, if you're a gamer, or host only sports events, a sectional isn't really conducive for chatting it up..